Households that derive their annual income in a period of time less than one year have their income averaged over a 12-month period, provided the income is not received on an hourly or piece-work basis. This process is intended to apply primarily to teachers and other school employees under a contract which is renewable on an annual basis.

• (1) Contract renewals. The renewal process may involve signing a new contract each year; be automatically renewable; or as in cases of school tenure, rehire rights may be implied and thus preclude use of the written contract. The fact that such a contract is in effect for an entire year does not necessarily mean that the contract stipulates work every month of the year. Income from such a contract is considered as compensation for a full year regardless of the frequency of the compensation if stipulated in the terms of the contract, as determined at the convenience or the wish of the employer.
• (2) Determination of eligibility, basis of issuance and certification periods. The annual income household members receive from contractual employment described above is averaged over a 12-month period to determine the member's average monthly income. To determine the household's eligibility, all other monthly income from other household members is added to this average monthly income and income exclusions and deductions are applied in the normal manner. The worker must be alert to the fact that during the time a contractee is not working, such as summer months, the contractee may accept other jobs and have income from other sources.